Tax Abatement Information and Application

Existing homeowners and business property owners who wish to upgrade their properties or new homeowners or business owners looking to build in Pleasant Hill can take advantage of the City's tax abatement program. For home improvements, the abatement is limited to the increased value. This program applies to improvements to the main dwelling structure as well as to detached outbuildings, such as garages.

Pleasant Hill offers the strongest suburban tax abatement program in Polk County for residential, commercial, and industrial properties. This includes new construction, additions, and remodels. The abatement program is on a graduated five-year schedule, based on the value of eligible improvements placed upon qualified real estate.

Year

Taxes Abated

1st

75%

2nd

60%

3rd

45%

4th

30%

5th

15%

The Tax Abatement Application (PDF) for new construction and home improvement projects are to be submitted at the time of the Building Permit Application (PDF). Additions and remodeling projects qualify by increasing the actual value of the real property by at least 15%. The final determination about the increase in value is made by the Polk County Assessor. Click here for more information about the program.

The tax abatement stays with the property and if the ownership changes the new residents are not required to reapply.

Commercial/Industrial Example*

$1,000,000 valuation

Tax Abatement

Year 1
75%

Year 2

60%

Year 3
45%

Year 4

30%

Year 5
15%

Total

Taxes Paid

$9,833

$15,732

$21,632

$23,598

$33,431

$104,225

Taxes Abated

$29,498

$23,598

$17,699

$11,799

$5,900

$88,893

*Figures estimated using the 2015/2016 regular tax levy and assumes no changes to valuation, tax levy rate or rollback. Over five-years, the commercial or industrial project saves approximately $88,893.

Residential Examples*

$300,000 Home Valuation

Tax Abatement

Year 1
75%

Year 2
60%

Year 3
45%

Year 4
30%

Year 5
15%

Total

Taxes Paid

$1,823

$2,917

$4,010

$5,104

$6,198

$20,052

Taxes Abated

$5,469

$4,375

$3,281

$2,187

$1,093

$16,405

*Figures estimated using the 2015/2016 regular tax levy and assumes no changes to valuation, tax levy rate or rollback.
Over five-years, this home would save approximately $16,405.

$400,000 Home Valuation

Tax Abatement

Year 1

75%

Year 2

60%

Year 3

45%

Year 4

30%

Year 5

15%

Total

Taxes Paid

$2,430

$3,889

$5,347

$6,806

$8,264

$26,736

Taxes Abated

$7,292

$5,834

$4,375

$2,917

$1,458

$21,876

Over five-years, this home would save approximately $21,876.

Questions can be directed to the Community Development Department at 515-309-9461.